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Discussion Starter · #4 ·
Andhra govt. inks agreement with SCL-Turbo consortium today for NIAL.

Highlights:
Area: 1352 acres
Runway length: 3150 meters for 4E type aircraft
Cost: 368 crore
Pax capacity: 1.9 mil/year
Cargo capacity: 55k tonnes
Commencement timeframe: Jan 2020

Source: Business world
 

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State Governments don't really need AAI if the state possesses the cash or the means to build airports by themselves.

There are already two different AP government entities engaged in building airports in the state. This is merely a third option (giving a private company to build and operate via PPP)
 

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Discussion Starter · #11 ·
State Governments don't really need AAI if the state possesses the cash or the means to build airports by themselves.
Now that AAI is divesting itself of six more airports, I wish it could become some kind of regulatory body and the center make the states or local govts of metros take over the airports currently under AAI control. This will help in decentralization and a better alignment of needs and spending. Center could give block grants to states where it feels there is a need of airports for defense/development.
 

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Now that AAI is divesting itself of six more airports, I wish it could become some kind of regulatory body and the center make the states or local govts of metros take over the airports currently under AAI control. This will help in decentralization and a better alignment of needs and spending. Center could give block grants to states where it feels there is a need of airports for defense/development.
There were some good reasons for 'centralising' the portfolio of Aviation instead of letting the States handle it by themselves. In that era, with few air travellers and few airports, it made sense to have one big organisation that procured equipment (for example, aerobridges or airport radars) for the entire country resulting in lower costs, not to mention the sharing of human and other resources.

Now that the numbers have swollen, some states have taken the initiative to go on and chart their own route to growth. For the others, AAI still remains the cheaper and safer alternative. These smaller, poorer states are more than happy to have AAI handle their air transport infrastructure.

Aviation infrastructure is still an expensive affair in India, as the Maharashtra government has realised at Nagpur. It's one thing to take over an airport from AAI, another thing to pump money to keep it going, (which AAI used to manage by cross-subsidising) let alone make profits. Last heard, they were hunting for a private player to take over the airport.:eek:hno:

It will be interesting to watch the unfolding of the privatisation saga of these 6 AAI airports. While air travel in India has so far been heavily subsidised, Private entities will simply pass on the cost of operating airports to the users, in one way or the other...
 

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A.P. govt. cancels Nellore international airport concession agreement

The Andhra Pradesh government has terminated the concession agreement entered by the AP Airports Development Corporation Ltd. (APADCL) and the Nellore International Airport Private Ltd. for the development of a greenfield airport at Dagadarthi in Nellore district due to the failure of SCL-Turbo Consortium Pvt. Ltd. to achieve financial closure.

The project was awarded to the consortium on Design, Build, Finance, Operate and Transfer basis in September 2017 for developing the airport in 1,352 acres.

According to G.O. MS No.5 issued by special chief secretary (industries and commerce) R. Karikal Valaven, the agreement was signed on June 21, 2018 but the developer is yet to complete the financial closure, which should have been done by December 21, 2018.

Multiple extensions were granted up to July 15, 2019 which was more than one year from the date of signing of the concession agreement. After the above date, no extension of time was either sought or granted.

Besides, the land is not free from encumbrances and the lenders have not come forward to fund the project.

The G.O. further says as per the concession agreement, financial closure has to be achieved within the stipulated period and it is an independent obligation cast upon the developer and the same is not connected to handing over of the land by the APADCL, which stated that some portion of the land was made available for the project.
 
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